Throughout LeBron James‘ career, he has been a keen businessman off the court. That has seen James make many precise decisions concerning his sponsorship deals over the years that have continued to put him in an even greater spot financially well beyond his playing days. It saw him latch himself onto the Beats by Dre headphones that have turned out to be an investment that has helped him earn an incredible amount of money that allow him to live luxury for the rest of his life.
LeBron James’ investment in Beats by Dre
A few years into James‘ career, music mogul Jimmy Lovine and rapper Dr. Dre decided to start up headphone company in 2006 with the name “Beats by Dre.”
The company had initially had some trouble garnering any traction during the first few years into their existence, but they had huge aspirations. One of which was getting James to partner up with the brand that turned out to be an easier task than expected as the star forward had an interest in working with them back in 2008.
That is where things took an intriguing turn for James; it didn’t turn out to be a typical endorsement deal, but instead, the two sides worked out him getting some ownership stake. It turned out to be quite a profitable move for star forward over time.
James’ rising popularity, along with the timing of having the 2008 Beijing Olympics, led to an opportunity for promotion of the product to go through the roof. That also saw each member of the United States Men’s Basketball Team each get a set of headphones. That helped set the table for the company to take off to where it has become a multi-billion brand.
Kendrick Perkins says LeBron James got a $700 million check from Beats by Dre
By this point, it has become quite clear that James is a savvy businessman as he has made more off the court than his incredible amount of money through his NBA career.
He has had numerous investment decisions work out tremendously in his favor. His former teammate Kendrick Perkins recently spilled the beans during an interview with Runnin’ Plays: A Golden State Warriors Podcast,’ that when Dr. Dre sold Beats by Dre to Apple for $3 billion in 2014, James received a huge check for $700 million.
“He invested $4 million in a soccer team and all of a sudden he’s worth $30 million. When Dr. Dre got the big contract for the Beats by Dre, when they wrote him that check, LeBron James got $700 million off of it. He was a silent investor in the Beats and nobody knows this.”
That is a situation that never made the public airwaves as it was only revealed at the time that James earned $30 million in profit from that move. It shouldn’t come as much of a surprise that he raked in much more than that as he has been a massive reason for the company’s rise over the years.
It further speaks to the incredible smart moves that James has made off the court that has put him in an astonishing spot financially for life.
LeBron James believes Beats By Dre investment was one of his best decisions
In hindsight, James’ decision to take a stake in Beats by Dre and become one of the company’s biggest promoter has worked out phenomenally for him.
It’s a business venture that has seen him not only earn a significant payday from also further expand his brand beyond that. That has led to him to voice during an interview on “Kneading Dough,” hosted Maverick Carter in early 2018 that him partnering with Beats By Dre was one of his best business decisions. (H/T Kathleen Elkins of CNBC)
“There’s two,” the NBA star said. “Signing with Nike and getting down with Beats.”
Business decisions such as this have put him and his family a spot where they will never have to worry about anything financially. It speaks to him putting trust in investment as he did with Blaze Pizza and the Liverpool soccer team that has significantly worked in his favor over the years.